NW House builders providing much more than homes as huge additional benefits are revealed
Report also demonstrates regional variances in house prices
A new report from the Home Builders Federation has revealed for the first time the full extent of the community and economic benefits of house building in the North West. And with the region still not building enough homes compared to its need, the Economic Footprint of House Building report also highlights just what the North West is missing out on.
Last year in the North West, 14,130 homes were started by private house builders, the public sector and housing associations. Based on the findings of the report, this level of housing output resulted in the following benefits to the region:
60,759 jobs were supported;565 graduates and apprentices positions were created;607,590 new trees or shrubs were planted and maintained;£22,706,910 towards education in the area;£18,171,180 in extra council tax revenue;£141,300,000 in other tax contributions;£13,225,680 towards new open spaces, community spaces or sports facilities, or enhancing existing resources;3,250 new affordable homes were built;Payments of £312,880,590 to local authorities for further provision of new affordable homes.
While house building is increasingly being recognised as a key driver of economic growth, there are still not enough new homes being built in the region. In the North West, this manifests itself as an estimated shortfall of 4,345 homes every year. If the region was to meet this need, the knock-on economic benefits could be:
18,685 extra jobs supported;174 graduates and apprentices positions created;186,848 trees and shrubs planted;£6,982,897 towards education in the area;£5,588,056 in extra council tax revenue;£43,453,000 in extra tax contributions;£4,067,201 contributed to open spaces, community, sport and leisure facilities999 affordable homes built;Payments of £96,217,978 to local authorities for further provision of new affordable homes.
The report also shows the variance in house prices across the region. House prices in the North West of England have risen by 5.4% over the last two years according to the Land Registry but they remain 17% below their 2007/08 peak. However, the performance of markets within a region can vary substantially. House prices in Trafford are 4% above their previous peak while in Blackpool they are 31% below.
Commenting on the release, Stewart Baseley, executive chairman at HBF, said:
“House building makes a huge, but largely hidden, social and economic contribution to the cities, towns and villages of the North West. Whilst housing output in the region has increased, we are still not delivering anywhere near what is needed. As well as delivering desperately needed new homes, increasing housing supply would provide significant additional benefits for everyone living in the region through additional jobs, investment in infrastructure and facilities for communities.
“People often don’t realise that the new community centre, school or sports facilities have been funded directly as a result of housing developments.
“Ultimately, providing new homes for people also means better facilities for the wider community. These are the very things that turn a collection of houses into communities; brand new places where people want to live.”
In reference to the housing market in the North West, Neal Hudson associate director at Savills, commented:
“These variations are determined by the economic, demographic and affordability profile of demand versus the quantity and type of local housing supply. The combination of these factors determine how the housing crisis has affected each local market.
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Notes to Editors:
1. The Home Builders Federation (HBF) is the principal representative body for private sector home builders and voice of the home building industry in England and Wales. HBF member firms account for some 80% of all new homes built in England and Wales in any one year, and include companies of all sizes, ranging from multi-national, household names through regionally based businesses to small local companies: www.hbf.co.uk